MichaelC 160 Report post Posted August 18, 2012 I will be talking with the sellers this morning; they got the short form letter yesterday; we haven't discussed everything after that. I think they are going to come back and say "Why is the sell price $144k when the comps point to $150ish?" So at that point I would explain that the rent credits are added onto the sale price---is this correct? That's correct, Dee. Better still, if you don't want to run the risk of confusing the owner with rents credits, tell them you padded the price a bit to cover any possible negotiating you may have to do. In other words, you want to be sure the homeowners receive the net price you quoted them. When we get to the discussion of the option money if they squawk I'll let them have one month's rent $1200 out of the $4k. Correct again! If you do need to share the money, and you probably will, since these folks are somewhat familiar with lease options, do so grudgingly and let them know you are making an exception for them. The option consideration is yours and you've got to think of it as such. Share this post Link to post Share on other sites
MikeT/NC 5 Report post Posted August 18, 2012 Dee, I'm not sure how your closing agent would handle the OC check. You'd better talk that over with them before any check is written. But I don't think that the rent credits would be added to the NET sales price. So if they wanted to net 144 and your rent credits were going to total 5k then you would have to add the 5k to the 144 for a gross sales price of 149. Of course you would have to factor in the OC also. Share this post Link to post Share on other sites
DeeLight 8 Report post Posted August 18, 2012 Yes Mike, that is correct as I understand it. So it would be $144k + $7k + $5k oc. I never heard back from the seller---big surprise. She wants to sell for more than is realistic because it's a good income property for them. The interesting thing is I am building a few buyers in the area. If someone turns up to be the perfect candidate I may email them and say, "Hey you are missing out. I've got a buyer right here and now". Meanwhile I am continuing to market like crazy. Thanks for your help Mike. I reeeeallly appreciate it!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 18, 2012 I never heard back from the seller---big surprise. She wants to sell for more than is realistic because it's a good income property for them. No motivation always means no deal. Share this post Link to post Share on other sites